How Bitcoin Could Reach $3 Million by 2050, Explains VanEck’s Head of Digital Assets Research

As an analyst with extensive experience in the financial markets and a keen interest in digital assets, I find Matthew Sigel’s analysis both insightful and compelling. His understanding of Bitcoin’s unique characteristics and its role in the global financial ecosystem is commendable. The parallels he draws between the 2020 and 2024 U.S. presidential elections are particularly intriguing, offering a potential roadmap for Bitcoin investors to navigate the political landscape.


In my latest interview on CNBC’s “Squawk Box”, as a researcher focusing on digital assets for VanEck, I offered insights into the dynamics of the cryptocurrency market, highlighting current trends and predicting potential impacts of the 2024 U.S. presidential election on digital currencies, particularly Bitcoin.

Initially, Sigel discussed Bitcoin’s impressive surge surpassing $68,000, crediting this rise to an amalgamation of heightened liquidity and escalating enthusiasm for non-traditional investments during periods of financial instability. He elaborated that the value of Bitcoin is predominantly affected by aspects like its inverse relationship with the U.S. dollar and its positive relationship with monetary expansion, making it a protective asset when traditional currencies are volatile.

During our conversation about the upcoming U.S. presidential election, Sigel pointed out that Bitcoin could potentially gain from an administration friendly to cryptocurrencies. He noticed that Bitcoin’s upward trend in 2024 seems similar to its path during the 2020 elections. As we get closer to the election, he thinks there might be another significant increase in Bitcoin’s value, particularly if the results suggest a favorable view on digital currencies.

Sigel’s examination implies that a possible change in regulatory viewpoint toward cryptocurrency, from a supportive administration, could strengthen Bitcoin’s standing within financial markets even more. He drew parallels between the current situation and 2020, highlighting a comparable price trend where Bitcoin’s worth remained stable prior to the election and then escalated once the outcomes were announced.

Sigel additionally voiced his opinions on Bitcoin’s function as an investment, highlighting its value stemming from its limited quantity, which sets it apart from depreciating fiat currencies due to inflation. He mentioned that Bitcoin’s unique traits result in different associations with conventional asset types, emphasizing its special niche within the financial world. Moreover, he suggests that the allure of Bitcoin is demographically driven, captivating younger investors, while older generations typically view it with caution.

Regarding Bitcoin’s global impact, Sigel discussed the influence of nations from the BRICS bloc and their growing interest in cryptocurrency. He noted that the BRICS group has expanded to include six new members, such as Argentina and the UAE, who are actively considering Bitcoin adoption within their economies. Given that the BRICS’ combined GDP now exceeds that of the G7, Sigel suggests this trend could signal Bitcoin’s future importance in international trade, particularly for countries seeking to lessen their reliance on traditional dollar-based systems.

Discussing the future worth of Bitcoin, Sigel proposed an idea where even minor acceptance as a reserve currency in worldwide trade could significantly increase Bitcoin’s value. He outlined a theory suggesting that Bitcoin’s price might skyrocket by 2050 primarily due to its growing use as a reserve asset by central banks and large financial institutions.

In our analysis, it’s predicted that by the year 2050, Bitcoin could become a significant reserve asset in global trade and be held by central banks at a 2% allocation. This projection leads us to estimate a $3 million price for Bitcoin. Although this figure might seem extraordinary, when considering a 16% annual growth rate over several decades, it’s not as extreme as it initially appears.

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2024-10-29 17:30